KUWAIT: Dec 23, 2024 marked the 90th anniversary of the establishment of Kuwait Oil Company (KOC), a national institution that has achieved leadership in oil and gas exploration and production. KOC has persevered through challenging times, including the Second World War, the 1990 Iraqi invasion and the COVID-19 pandemic. Over nine decades, KOC has dedicated its efforts to enhancing Kuwait’s petroleum reserves and increasing production, thereby bolstering the national economy and contributing to development.

The company has focused on developing the skills of its workforce and the wider society, prioritizing environmental conservation and sustainable development. It has consistently supported Kuwait’s leadership and development processes, with dedicated personnel whose efforts have made the company a model of productivity and excellence.

KOC was established on Dec 23, 1934, through a partnership between the Iranian-English Petroleum Company, now known as British Petroleum (BP), and the American Oil Company, now Chevron. In 1936, the company drilled its first well in Bahra, and in 1938, it discovered oil in the Burgan Al-Kabeer field, which remains the second-largest oil field globally. By the end of 1938, eight wells had been drilled.

World War II interrupted the company’s operations, but work resumed after the war in 1945. On June 30, 1946, KOC exported its first shipment of crude oil. The company developed Ahmadi town and expanded its operations, starting production in Magwa between 1951 and 1953. In Dec 1955, it discovered a new field in Rawdatain, north of Kuwait.

In 1956, KOC launched an exhibition showcasing its history and operations. On April 27, 1950, it inaugurated Ahmadi Hospital to provide medical services to its employees and their families. By 1974, the company transferred 60 percent of its concessions to Kuwait, with the remaining 40 percent divided equally between BP and the Gulf Company. In March 1975, KOC was fully nationalized. Later, in Nov 1976, the cornerstone for the gas project at Ahmadi refinery was laid. The year 1977 saw the drilling of a deep well at Burgan field, reaching a depth of 20,000 feet.

The Iraqi invasion on Aug 2, 1990 severely disrupted the company’s operations. However, KOC personnel made extraordinary efforts to safeguard Kuwait’s oil wealth. After liberation, the company quickly responded to the environmental disaster caused by retreating Iraqi forces, who set 727 oil wells on fire. Despite the enormous challenge, the fires were extinguished within 240 days. On July 27, 1991, KOC exported its first post-war crude oil shipment and resumed drilling at Magwa on September 14, 1991. On Nov 6, 1991, the late Amir Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah extinguished the last burning well, Burgan 18.

Since its inception, KOC has established seven natural reserves and oases to promote environmental conservation and sustainability. In 2005, it launched the first marine colony as part of its environmental efforts. In Oct 2012, it opened the Kuwait Center for Integrated Smart Fields, marking a significant step into the digital realm. The company has worked extensively to reduce associated gas flaring, cutting it from 17 percent to just 0.5 percent.

On Oct 25, 2016, KOC inaugurated the Sedra solar energy project at Umm Qadir field, generating 10 megawatts of electricity. In 2017, it completed a 3D seismic survey of Kuwait Bay and surrounding areas. In 2018, the company exported its first shipment of light crude oil. In 2019, it signed an agreement with Halliburton for marine drilling and exploration, leading to the discovery of the Al-Nokhatha field. This field is estimated to contain 2.1 billion barrels of light oil and 5.1 trillion cubic feet of gas.

In 2020, KOC launched a project to produce heavy crude oil from the South Ratqa field in northern Kuwait. Despite the challenges posed by the pandemic, it successfully exported the first shipment of heavy crude oil. In 2022, the company celebrated increasing production in the northern region to 600,000 barrels per day, with plans to raise it further to 800,000 barrels per day by 2026.

Currently, KOC is implementing its 2040 strategy to enhance efficiency and productivity and its 2050 energy transformation strategy, which aims to achieve zero carbon emissions. – KUNA